Rights responsibilities of banks and their customers
Download
1 / 16

rights responsibilities of banks and their customers - PowerPoint PPT Presentation


  • 219 Views
  • Updated On :

Rights & Responsibilities of banks and their customers. Usha Thorat Deputy Governor, Reserve Bank of India October 6, 2008. Customer Service - Overarching Principles. ‘Banks exist because of customers’ – they lend customers’ deposits with a margin

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'rights responsibilities of banks and their customers' - Jimmy


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Rights responsibilities of banks and their customers l.jpg

Rights & Responsibilities of banks and their customers

Usha Thorat

Deputy Governor, Reserve Bank of India

October 6, 2008


Customer service overarching principles l.jpg
Customer Service - Overarching Principles

  • ‘Banks exist because of customers’ – they lend customers’ deposits with a margin

  • Treating customers fairly –transparency reasonableness, simple and clear documentation, educating customers

  • Treating bankers fairly- become aware and financially literate, borrow responsibly, use products prudently


Customer protection our approach l.jpg
Customer Protection - Our Approach

  • Code of conduct - principle of self regulation - Role of BCSBI

  • RBI regulations - master circulars - dissemination through website -

    http://www.rbi.org.in/commonman/English/Scripts/Notification.aspx

    http://rbi.org.in/scripts/BS_ViewMasterCirculardetails.aspx

  • Complaint redressal machinery at branch , Nodal office, Head office

  • BO’s Offices; Customer Service Dept., RBI


Interest rate related complaints l.jpg
Interest rate related complaints

Bank’s responsibility

  • Explain these in writing; give examples

    • How is interest calculated?

    • Fixed interest - what is the reset clause?

    • Floating rate - what is the benchmark used?

  • Clearly state terms/conditions in loan document

    Customer’s responsibility

  • Read before you sign!

  • Do not ignore your doubts - Get them clarified

  • Never sign blank documents

  • If DSAs have contacted you, check with the bank


Penal interest l.jpg
Penal Interest

Bank’s responsibility

  • Explain clearly

    • when penal interest will be levied

    • Concept of service charges when penal interest is levied

      Customer’s responsibility

  • Remember

    • Defaults/delayed payments, cheque returns etc. attract penal interest and service charges

    • Funds need to be set aside for repayment of loan on due dates

  • Seek bank’s advice, if in difficulty


Service charges l.jpg
Service Charges

Bank’s responsibility

  • Display service charges

  • Extend concessional rates to special category persons

  • Have a cap on all charges, incl. interest rates & penal charges

  • Inform customers of changes; offer option to discontinue facility

    Customer’s responsibility

  • Read all the material sent to you by the bank

  • Remember

    • banks have freedom to set interest rates/service charges

    • you have option to choose the bank which offers best rate

  • Compare rates - make informed choice


Loan documents return of securities l.jpg
Loan Documents; Return of Securities

Bank’s responsibility

  • Give customer a complete set of loan agreements and enclosures at time of sanction /disbursement

  • Return the securities as soon as the loan is repaid

    Customer’s responsibility

  • Get a complete set of loan documents from banker

  • Read the MITC- Most Important Terms and Conditions

  • Get securities back, as soon as loan is repaid


Recovery of bank dues l.jpg
Recovery of Bank Dues

Bank’s responsibility

  • Place list of recovery agents on web site

  • Train & sensitize recovery agents

  • Ensure recovery agents follow code of conduct

  • Record all conversations with customers

    Customer’s responsibility

  • Remember :

    • All loans have to be repaid

    • Not to borrow beyond your repaying capability

    • Conversation you have with the recovery agent is recorded

  • Seek assistance of your bank if in problem


Insurance linked products l.jpg
Insurance linked products

Bank’s responsibility

  • Avoid offering ‘bundled’ products

  • Explain and get explicit written consent

  • Ensure Insurance policy is obtained & active

    Customer’s responsibility

  • Understand components of your loan product

  • If insurance is part of it, ensure policy is in force


Credit cards l.jpg
Credit cards

Bank’s responsibility

  • Do not issue unsolicited cards - if activated & charged, pay prescribed compensation without demur.

  • Do not issue unsolicited products on cards

  • If DSAs are sourcing credit card, ensure card holder has signed & understands his responsibility

  • Delivery of Cards & PINs only to person concerned

  • Stop lost cards immediately on report of loss

  • Consider insurance on lost cards

  • Send statements on time; use e-statements, SMS alerts etc to keep the card holder informed of payments, due dates etc


Credit cards11 l.jpg
Credit Cards

Customer’s responsibility

  • Keep your credit card safely

  • Be present when card is used by merchant estab.

  • Do not use public computers for internet purchase through credit cards

  • Keep credit card number & help line detail handy

  • Report immediately loss of card

  • Opt for card statements by email or / and SMS

  • If you do not want a card, cut it and send it back to the credit card issuing authority 


Slide12 l.jpg
ATMs

Bank’s responsibility

  • Ensure ATMs are in working mode at all times

  • Have CCTV in all ATMs

  • Check audit trails periodically

  • Check cash handling processes and procedures

  • Check for quality of notes stacked in the ATMs

    Customers’ responsibility

  • Keep ATM cards safely

  • Do not keep the PIN with the Card

  • Inform discrepancy immediately, if possible with the witness of the security guard


Cheque drop facility l.jpg
Cheque Drop Facility

Bank’s responsibility

  • Remember - Cheque drop facility is only an alternate mode of cheque collection

  • Box should bear legend indicating that it is an alternate mode and that customers can get acknowledgement if required

  • Install automatic cheque acknowledging machines which give receipt on dropping the cheque

    Customer’s responsibility

  • Insist & obtain acknowledgment for cheques if you want them


Slide14 l.jpg
TDS

Bank’s responsibility

  • Apprise account holders, specially senior citizens -need to submit 15G/15H forms, if tax is not to be deducted

  • TDS certificate is to be issued immediately to the account holder in person or by post

    Customer’s responsibility

  • Remember:

    • TDS is bank’s statutory obligation

    • If you are not an income tax assess; give 15G/15H form to the bank

    • If you failed to keep your bank informed & TDS has been deducted, than claim refund from Tax authorities and not the bank


Cheque collection l.jpg
Cheque Collection

Bank’s responsibility

  • Display bank’s cheque collection policy

  • Adhere to the displayed policy

  • Levy charges as per RBI stipulations

  • Compensate customer without waiting for request for any delay

    Customer’s responsibility

  • Read the cheque collection policy

  • Insist & obtain admissible compensation for delay


Some quotes for banks to ponder l.jpg
Some quotes for banks to ponder!

“Customer service is not a department, it's an attitude!”

“Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong”

“If we don’t take care of our customers, someone else will!”


ad